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Tax rises will likely be announced in the autumn budget, chancellor Rachel Reeves has admitted.
She said Labour would stick to its election manifesto pledge not to raise national insurance, income tax or VAT.
During the election campaign, Labour candidates avoided answering questions on whether other taxes would be increased – and the Conservatives warned that Labour would raise other taxes.
But on Tuesday, the day after announcing several money-saving measures, Ms Reeves told The News Agents podcast: “I think that we will have to increase taxes in the budget.”
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She would not say which taxes could be raised during the Labour government’s first budget on 30 October.
Sky News looks at which ones could be targeted.
Inheritance tax
This is one of the taxes most likely to be changed.
Inheritance tax is charged at 40% on the value of an estate above £325,000 when someone dies.
The tax rate could be increased or the value people have to pay inheritance from could be lowered to raise money.
There are currently several exemptions, including on agricultural land and family businesses, but these could be lifted to include them.
The government could also reduce the number of years allowed when giving away assets before someone dies before inheritance tax kicks in.
A leaked recording from March revealed now chief secretary to the Treasury, Darren Jones, saying inheritance tax could be used to “redistribute wealth” and address “intergenerational equality”.
Capital gains tax
Capital gains is imposed on the profit from the sale of capital assets, including second homes, shares, business assets…
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